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How to Estimate the Market Value of Your Home

How to Estimate the Market Value of Your Home

Have you ever driven by an open house sign on your street or talked to a friend who is currently selling their home? Have you ever asked yourself – how much is my house worth? How much would a home appraisal be?

If you have been wondering how much your home could sell for on the current market, then this may be a sign to do a home evaluation assessment soon to estimate the market value of your home.

Here is a list of typical questions individuals have about determining market value:

Why should I estimate my home’s market value?

Determining the market value of your home gives you a better idea of how much your home could sell for under normal conditions. It can also allow you to understand your insurance premiums and property taxes a bit better.

You can choose to estimate your home’s market value on your own but it requires lots of research before hand. Or you could make it easier for yourself and hire a professional appraiser to estimate the value instead; see how Highland Realty does their FREE Home Evaluations here.

What is market value?

Market value describes what your property is worth if you were to put it on the market right now and sell it (under normal conditions). Market value is never a set amount, but with the right tools and research, you can get a relatively accurate idea of your home’s value.

What affects market value?

  • External characteristics – “curb appeal,” condition of your home, lot size, style of home, sidewalk, road conditions outside of house, etc.
  • Internal characteristics – Size and number of rooms, condition of appliances, heating type, energy efficiency, etc.
  • Supply and demand – The number of homes for sale versus the number of buyers; how quickly are the homes in your area selling?
  • Location – desirability for a specific school district, neighbourhood, proximity to transit stations and major highways, proximity to shopping centres and grocery stores, etc.

How do I estimate my home’s market value?

The most common method to estimating your home’s market value, and the method that is often used by real estate agents, is the sales comparison approach. Through this method, you research sales of similar properties in your neighbourhood in the last few weeks or months. The sale prices of these compared properties will give you at least a good range of selling values to start with.

It is important to determine whether or not these other properties were sold under normal conditions or not – the more “normal” the conditions were when the house sold, the more accurate you will be. Abnormal conditions would include when buyers purchase based on time restrictions, career relocation options, or relocation due to divorce.

We recommend gathering a minimum of three comparable properties that recently sold in your area for starters.

How do I determine whether a property is comparable?

The most important characteristics to watch for are lot size, square footage, home style, age and location.

Who should I do a home evaluation with?

With Highland Realty, you can get a FREE HOME EVALUATION anytime during the year. It is recommended to do one annually and with us, there are NO FUTURE OBLIGATIONS once you complete the evaluation.   

Some parameters are easy to compare, such as lot size, age of construction, number of bedrooms and bathrooms. However, other parameters require much more research, data and experience to accurately analyze. With Highland Realty, we are not just evaluating your home value by providing you with the typical Comparative Market Analysis (CMA) report. Our professional team members are also looking at your specific neighborhood and surroundings for potential appreciation hints, as well as any key statistics that will help you understand the market in a better way.

We strongly suggest you book a home evaluation annually to get the most up-to-date market information about your property. Why not do it with us this year?

Complete the form below and we will get in touch with you within 24 business hours. Thank you!

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Notes

Source: Department of Taxation and Finance of New York State